economy
December 3, 2025
This Thanksgiving's real drama may be Michael Burry versus Nvidia
Is Burry the canary in the coal mine, warning of a collapse that's inevitable? Or could his fame, his track record, his now unrestricted voice, and a fast-growing audience trigger the very implosion he's predicting?
TL;DR
- Michael Burry is making a significant bet against Nvidia and the AI boom.
- Burry claims Nvidia's stock-based compensation has cost shareholders $112.5 billion and that AI customers are "funded by their dealers."
- Nvidia has responded to Burry's allegations, stating his math is incorrect and that its practices are consistent with peers.
- Burry compares Nvidia to Cisco in the late 1990s, which overbuilt infrastructure and saw its stock crash.
- Burry recently deregistered his firm, Scion Asset Management, and launched a Substack newsletter, "Cassandra Unchained," to share his analyses.
- The article draws parallels to how past criticisms from investors like Jim Chanos (Enron) and David Einhorn (Lehman Brothers) may have accelerated company collapses.
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